Algonquin Carpets reported the following amounts in its 2013 financial statements. The 2012 figures are given for comparison.

Requirements
1. Calculate Algonquin€™s acid-test ratio for 2013. Determine whether Algonquin€™s acid-test ratio improved or deteriorated from 2012 to 2013. How does Algonquin€™s acid-test ratio compare with the industry average of 0.80?
2. Calculate the days€™ sales in receivables for 2013. How do the results compare with Algonquin€™s credit terms of net 30?
3. Calculate Algonquin€™s accounts receivable turnover ratio. How does Algonquin€™s ratio compare to the industry average accounts receivable turnover of10?

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2013 2012 Current assets: $ 10,000 9,000 Cash .. 4,000 20,000 Short-term investments $ 63,000 $ 76,000 Accounts receivable Less: Allowance for uncollectibles 6,000 57,000 5,000 71,000 195,000 191,000 Inventory Prepaid insurance... 4,000 $ 280,000 $ 104,000 $ 732,000 4,000 $ 285,000 $ 106,000 $ 735,000 Total current assets Total current liabilities Net sales (all on account)